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EA takes out $1 billion loan for Take-Two acquisition

by Alexander Sliwinski on May 10th 2008 3:00PM

Electronic Arts has received commitments for a $1 billion loan from various financial institutions toward its acquisition of Take-Two. The company has up until January 9, 2009 to tap the funds in its $2 billion hostile takeover and there's been no update on the deal since Take-Two's last rejection.

GamePolitics spoke with Wedbush Morgan analyst Michael Pachter who says that after the Pandemic/BioWare acquisition that EA is a little strapped for cash. He believes the timing of this loan isn't "particularly unusual" and it could be possible that EA might make a higher bid for Take-Two.

Source

Tags: ea, Electronic-Arts, loan, take-two, takeover

Reader Comments (91)

EA, stop it, just stop it.

They could always get a quick PC port of GTA - since it's already on the 360 it wouldn't require a great deal of modifying. Besides, if Gears of War sold 1 million on the PC then I reckon GTA would do even better.

I like the way this man thinks. PC GTA is a absolute buy.

Well, I own all the last generation GTAs on the PC - you can turn them all up to 1680x1050 widescreen, anti-aliasing/draw distance/texture quality on on full and they look just short of being on a current-gen console.

http://www.youtube.com/watch?v=wNShUdfrRMU

Sad news.. woe the day EA can buy them that cheap. ONE game alone made over HALF A BILLION in a week.. and they think they can buy the whole company for 1-2 bill? RIiiiiight.

FUCK EA.

(the thought of having all the ads in GTA4 real.. just drives me crazy.. that's the charm of the game!!)

Your logic is slightly flawed because it doesn't cover investment risks nor development budget. If EA buys Take-Two, they'd get 1-2 billion in pure safe profit.

I still don't think it's worth it though.

Yes they did make a killing in one week and I'm sure they will break the 1 billion mark by 09. However TTWO is a one trick pony and reports inconsistent earnings every single year because they really only make a buck when a GTA is released. They should take settle for $28/share. That's all they are worth.

Haha

Dammit, my comment was directed to Mike.

Okay, sorry, the comment system IS fucking me in the ass.

It's okay, I just thought you were taking the piss :)

WTF didn't EA say they're not buying Take 2?

I don't know whats happening really.

I said it before and I'll say it agian....

EA is trying to cuase the 2nd videogame crash!!

VIVE LA RESISTANCE!

http://www.youtube.com/watch?v=wNShUdfrRMU this link concurs with you ThornedVenom

ohh I don't know ThornedVenom.. Take Two has a lot of other ips that are very profitable as well. I would be surprised if they could be bought for only a billion.

I think they have some real serious DLC coming for GTA4 which could add quite alot more revenue to that $500 million dollar weekend. (rumor is a whole city worth) ($10x how many sold??)

Oh I see a dark future for videogames... an EA console, I mean if they keep buying every developer out there (and most likely they will) they'll have all the market just for them.

Ubi start buying stuff xD

what part of "fuck off, we'd like to keep our company" does EA not get?

That part.

(I tried to make an arrow but angle brackets are bad).

You're all acting like Take-Two has never devoured another company before. They are a public company, this is a risk that goes with the territory.

It's only a matter of weeks.

To paraphrase Playboy X "EA says 'make games', T2 says 'how often?'".

I'm not happy about it but there's nothing we can do.Just hope that GTA5 will turn out okay.

TAKE THE HINT EA. >:(

I love EA. Probably my favourite Developer/Publisher. Hope they take over everyone and we just end up with one super duper games company. That would be awesome. Had u all fooled for a minute there didn't I, didn't I.

I read your comment with a glimmer of hope that there was a reason not to be disappointed by this. Then I saw you were joking.

God I hope this fu

What I meant to say is:

God I hope this F-word-ing S-word doesn't happen. I F-word-ing hate EA.

Yeah, this shit is fucked up.

So let me get this straight...you're hoping this fucking shit doesn't happen, and you fucking hate EA?

Yes, you are precisely correct DangerMouse.

Screw EA is my opinon. Seriously there needs a line to be drawn somewhere to stop these buy outs. I think it should be stopped on grounds of contributing to a growing monopoly. If EA keeps this us that's what they will have. They are buying out all the good studios and if not stopped the only ones left will be the crap devs.

fuck EA
Dirty,hostile mediocre ,cheap.

Damn,monopoly,milking,super copying,endles sequels and complete disrepect and dishonor for everyone else in the industry.

and fuck off T2 if they do give up,i got too much respect to that company for them to do something like that.

GTA 2010,20011,20012 etc all crap ,with buyable cars and weapons, and bunch of real adss if you say no to that,say NO TO EA.

Im not buyyng any more EA game from now on btw,crackin n hackin like a good pirate from now on.

they dont know limits,where are they going with these and what do they want to do?
what could they do?

EA is big,its gotten bigger and it will probably get eve bigger,if its already about to "eat" T2,what else will they wish to "eat" next?

yeah but on the plus side when EA colonize Take Two, all the talented guys will leave to form their own company.

GTA is approaching the end of it's franchise life anyway so EA can carry on churning out other GTA versionsfor the next ten years that are basically the same to appease open world ganstas, and the ex-Take Two staff can work on new and cool stuff.

Have a big online Tiger Woods Golf scramble charity to save Take 2 from EA. Of course EA would sabotage their own servers to prevent this from happening.

umm....guys talking about bioshock....its owned (and published) by 2K Games...which is different than Take 2, the publisher of GTA and owner of rockstar

Flowers for everyone!

Soon there will be no game companies because EA buys them all out. EA will be the next Wal-Mart. Everytime EA buys out a game company the game goes to crap. I like to compare EA to Toyota. When they first started they were more for quality. Now that they have grown so fast, they care more about shipping the most product out and less on quality of the product.

T2 needs to stick to their Nancy Reagan defense!

Previous 50 Comments

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EA takes out $1 billion loan for Take-Two acquisition

Reader Comments (91)

Posted: May 10th 2008 3:41PM Spunky Monkey 190906 said

Posted: May 10th 2008 3:46PM Haggard said

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